THE EFFECT OF LOYALTY PROGRAMS ON CUSTOMER LOYALTY IN THE HOSPITALITY INDUSTRY

Serli Wijaya




Abstract


Loyalty programs have been extensively used to enhance customer loyalty. Despite the rapid growth of the programs, its effectiveness in boosting customer loyalty is still questionable. By employing meta-analysis technique, nine empirical studies in hospitality businesses are reviewed. Result shows that loyalty programs do not have a significant effect on increasing customer loyalty. The programs are only able to encourage customers to repeatedly purchase without having emotional attachment and personal relationship to the companies.


Keywords


Loyalty Program, customer loyalty, hotel, airlines, restaurant, hospitality industry.

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The Journal is published by The Institute of Research & Community Outreach - Petra Christian University. It available online supported by Directorate General of Higher Education - Ministry of National Education - Republic of Indonesia.

©All right reserved 2016.Jurnal Manajemen Perhotelan, ISSN: 0216-6283

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